Red Deer Ranks Among Fastest-Growing Rental Markets in Canada

Red Deer has emerged as a significant player in Canada’s rental market, ranking sixth in affordability among small and mid-sized cities while also being one of the 15 fastest-growing rental markets outside the country’s largest urban centers as of December 2023. The annual average rent for purpose-built and condominium apartments in Red Deer increased by 2.8 percent, reaching an average of $1,427 per month, up from $1,395 in November.

Provincial Trends in Rental Prices

Other cities in Alberta also showed notable rent growth. Lethbridge led the charge with a 3.6 percent increase, followed closely by Grande Prairie at 3 percent, and Lloydminster with a 1.8 percent rise. This information comes from the latest National Rent Report published by Rentals.ca and Urbanation.

Despite rising rents, Red Deer maintained its position as an affordable option, with five additional Alberta communities ranking among the ten most affordable rental markets in Canada. Lloydminster reported the lowest average rent at $1,214, followed by Fort McMurray at $1,275, Medicine Hat at $1,355, Grande Prairie at $1,408, and Lethbridge at $1,525. Airdrie and St. Alberta also made the list, with average rents of $1,629 and $1,726, respectively.

National Overview and Future Projections

On a national scale, the report indicates that average rents for purpose-built rental apartments have seen a 1 percent annual decline, averaging $2,049. The overall average asking rent for residential properties fell by 2.3 percent year-over-year in December, marking the fifteenth consecutive month of annual decreases. Despite this downward trend, average rents remain 14.1 percent higher than pre-pandemic levels recorded in December 2019.

In Red Deer, the average rent for all residential properties stood at $1,549 in December. Comparatively, Alberta cities with lower average rents include Lloydminster, Medicine Hat, and Fort McMurray. Conversely, Lethbridge, Edmonton, Calgary, and Airdrie reported higher average rents, with Calgary reaching $1,824.

“After a sharp run-up coming out of COVID, rents in Canada have been on a downward trend for more than a year,” stated Shaun Hildebrand, president of Urbanation. He noted that various factors, including record-high apartment completions and a slowdown in population growth, have contributed to this trend. “Looking ahead, rents are likely to continue trending down in the near term as these conditions persist,” he added.

Among Canada’s six largest markets, significant rent declines were observed in December, particularly in Vancouver, where rents fell by 7.9 percent to $2,654, and in Toronto, where rents dropped by 5.1 percent to $2,498. Edmonton was the only major market to report an increase, with a modest 0.8 percent rise.

Provincially, average apartment rents have declined year-over-year across British Columbia, Ontario, and Alberta, while Saskatchewan experienced the highest annual rent growth at 7.1 percent.